WalletHub: California Ranked 41 in Energy Costs

According to WalletHub, California ranked 41 in the United States in average monthly energy costs. California has an average monthly cost of $476.

To better understand the impact of energy on our finances based on where we live and how much we use, WalletHub compared the total monthly energy bills in each of the 50 states. Our analysis uses a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.

“Wyoming is the state with the highest energy costs in 2024, and residents’ average monthly energy bill is a whopping $1,591. This is due in part to the fact that Wyoming has the highest gas and residential oil consumption per capita, which makes sense considering Wyoming’s extremely cold winters.”  – Cassandra Happe, WalletHub Analyst

5 Highest Monthly Energy Costs

1. Wyoming – $1,591
2. North Nakota – $840
3. Iowa – $798
4. Montana – $787
5. Minnesota – $782

5 Cheapest Monthly Energy costs

1. New Mexico – $376
2. Arizona – $400
3. Kansas – $436
4. Texas – $437
5. Nebraska – $453

Here is where California Stood:

• Electricity price – 3^rd Highest
• Electricity Consumption – 49^th (second lowest)
• Natural Gas Consumption – 47^th (4^th lowest)
• Motor-Fuel Price – highest in nation

In-Depth Look at the States with the Highest Energy Costs

Wyoming

Wyoming is the state with the highest energy costs in 2024, and residents’ average monthly energy bill is a whopping $1,591. This is due in part to the fact that Wyoming has the highest gas consumption per capita and the highest residential oil consumption per capita. Coupled with relatively high prices for heating oil and natural gas, this makes Wyoming a particularly costly state. Considering Wyoming’s extremely cold winters, however, this isn’t too much of a surprise. Residents also may not have as many heating options as other states, given that many residents live in more remote areas.

North Dakota

North Dakotans have the second-most expensive average monthly energy bill in the country, at $840. While this is a lot, it’s around $700 lower than the bill in Wyoming, the top state.

High consumption contributes to North Dakota residents’ expensive energy bills. North Dakota has the fifth-highest electricity consumption, the fourth-highest natural gas consumption, and the fourth-highest residential fuel oil consumption per capita. Interestingly, aside from heating oil, energy isn’t particularly costly in the state. It’s just high usage that drives up monthly bills. But high heating bills can still sting during North Dakota’s harsh winters.

Iowa

Iowa is the third-most energy-expensive state, with residents’ average monthly energy bill costing $798. This is due mainly to the state having the second-highest residential fuel oil consumption per capita. While Iowa doesn’t have quite as frigid winters as the other top states, temperatures do get very low, so high consumption makes sense.

Aside from fuel oil, the only other energy type that Iowans use more than average is natural gas.

Methodology

In order to determine the most and least energy-expensive states, WalletHub compared the average monthly energy bills in each of the 50 states using the following equation:

(Average Monthly Consumption of Electricity * Average Retail Price of Electricity) + (Average Monthly Consumption of Natural Gas * Average Residential Price of Natural Gas) + (Average Monthly Consumption of Home Heating Oil * Average Residential Price of Home Heating Oil) + (Average Motor-Fuel Price * (Miles Traveled/Average Motor-Fuel Consumption/Number of Drivers in the State)) = Average Monthly Energy Bill in the State

Sources: Data used to create this ranking were collected as of June 3, 2024 from the U.S. Census Bureau, U.S. Energy Information Administration, Federal Highway Administration, American Automobile Association, National Highway Traffic Safety Administration, and the United States Environmental Protection Agency.

Related

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